The land represents ~1% of the purchaseOn the contrary - if you purchase a $2 MM shack in manhattan on a postage stamp lot, the land could represent 99%Lever 2 - % of the property with a shorter useful life.Not all parts of a piece of real estate are depreciated at the same speed.Certain personal property assets have SHORTER lifespans in the eyes of the IRS vs the standard 27.5/39 year livesProperties with tons of this often have:- Over-developed land sites (hardscaping, pools, retaining walls)- Fancy Fixtures- Fancy Furniture (STRs!)

Although rents increased by 2% annually, the purchasing power of this income is equivalent to $4,325 in today's dollars.Year 10: $5,000 x (1 + 2%)^10 / (1 + 5%)^10 ≈ $3,742Year 15: $5,000 x (1 + 2%)^15 / (1 + 5%)^15 ≈ $3,237Year 20: $5,000 x (1 + 2%)^20 / (1 + 5%)^20 ≈ $2,800Due to rent increases failing to keep pace with inflation, you won't be able to maintain your standard of living.

I had one particular vendor with high standards that would exaggerate anything he found.My rule of thumb: people can live how they want to live as long as they are not 1. damaging the property2. living in filth that attracts pests3. impacting the neighbors (e.g. odors, junk detracting from the neighborhood, etc)4. creating an unsafe situation (e.g. hoarding and rescue workers can't access the home)When I visit a property, I document any issues and talk to the tenant.

Now I've finally hit a much more steady patch (knock on wood) now that they're all renovated and up to a certain standard (new roofs, hvac, etc).

What I did to combat this was make the review standard clear to guests in all your messages to them.

A qualified professional appraiser will generate a comprehensive analysis considering factors such as sales comparisons, highest and best use, market conditions, and income generated following Uniform Standards of Professional Appraisal Practice guidelines.

My debt-to-income levels, by conventional banking standards, are good but not great.

Also, if you've rehabbed this to SALE standards, you may only want to rent to Class A tenants that will take good care of the property.

@Chris Blackburn Hey Chris, that's pretty standard from what I've seen in my experience, especially if the seller is an institutional client.

I agree with many that have responded that one year financials and a revenue number from a schedule E would be standard.